Financial Crime World

Cyprus Cracks Down on Financial Crimes: AML-CFT Regulators Lead the Charge

Cyprus, a member state of the European Union (EU), is strengthening its anti-money laundering (AML) and countering the funding of terrorism (CFT) regulations to meet EU directives and international standards. In this article, we’ll discuss Cyprus’ efforts to combat financial crimes and the key roles of its AML-CFT regulators.

Cyprus’ Commitment to Combatting Financial Crimes

Following rigorous audits by the European Union (EU), the Organisation for Economic Co-operation and Development (OECD), and evaluations by the Council of Europe’s Moneyval Committee, Cyprus is determined to strengthen its AML-CFT framework.

Forefront Agencies

At the forefront of these efforts are Cyprus’ dedicated AML-CFT regulators. These agencies include:

  • Central Bank of Cyprus
  • Unit for Combating Money Laundering (MOKAS)
  • Authority for the Supervision and Development of Cooperative Societies
  • Securities and Exchange Commission
  • Cyprus Bar Association
  • Institute of Certified Public Accountants

These entities act as watchdogs, ensuring financial institutions comply with AML-CFT regulations and preserving Cyprus’ reputation as a responsible and trustworthy economic player on the global stage.

Entities Subject to Regulation

Various financial entities in Cyprus must adhere to AML-CFT regulations, including:

  • Banks
  • Investment firms
  • Money transfer companies
  • Stock exchange companies
  • Accountants
  • Casinos
  • Other financial institutions

These entities perform customer due diligence, risk assessments, and transaction monitoring to prevent financial crimes such as money laundering and terrorism financing. Failure to comply with regulations leads to fines from the Government of Cyprus and the EU.

Northern Cyprus’ AML Challenges

In the past, financial institutions and casinos in the Turkish Republic of Northern Cyprus (TRNC) have been vulnerable to money laundering activities due to insufficient AML legislation. The lack of proper understanding and expertise in AML across the financial sector in the Turkish Republic of Northern Cyprus provided opportunities for criminal activities.

Strengthening AML Regulations in Northern Cyprus

Efforts have been made in recent years to strengthen Northern Cyprus’ AML legislation, bringing it in line with EU directives and Financial Action Task Force (FATF) regulations.

  • The Prevention of Money Laundering Law of the Turkish Republic of Northern Cyprus was instituted in 1999.
  • Central Bank of the TRNC increases attention to combatting financial crimes.
  • Organizations in the TRNC face increased AML inspections and audits from local and international regulators.

Failing to meet AML obligations results in fines and reputational damage.

Tailored AML Solutions for Cyprus

With the need for regulatory compliance and advanced technologies, businesses in Cyprus can benefit from Sanction Scanner’s comprehensive AML solutions. Contact us for more information or to schedule a demo. Together, we can build a future where regulatory compliance is an essential part of responsible and trustworthy business practices.